Present Value Assignment
You simply gained the lottery price $70,000,000. After studying the positive print you be taught that you've two choices: Possibility A: Take the money worth of $47.6 million as we speak (earlier than taxes) Possibility B: You might be assured to obtain 30 graduated funds over 29 years. The primary cost is made as we speak. These funds will improve by 5% per 12 months till the ultimate cost. The primary cost, acquired as we speak, equals $1,900,000. Assuming a required price of return of 6%, calculate the current worth of Possibility B. Get Finance homework help as we speak